Japan Stock Boom Seen Driven by Profits That Still Hinge on Yen

  • Bumper crop of corporate profits expected on yen weakness
  • Forex boost could fade after latest results, Daiwa says

Images of Electronic Stock Boards As Nikkei and Topix Index Edge Up

Photographer: Kiyoshi Ota/Bloomberg
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After a record-breaking surge in Japanese blue-chip stocks amid all-time high corporate profits, the question is how long can the momentum last.

The Nikkei 225 Stock Average finally dipped Wednesday, after a 16-day winning streak that took it to the highest level since July 1996. The run-up led into the reporting season for the July-September quarter, which began in earnest this week.